Illinois Chamber warns of new tax on service deliveries
Todd Maisch, the executive vice-president of the Illinois Chamber of Commerce writes that the Illinois Department of Revenue is trying to bypass the state legislature (similar to Obama’s – the Chicago way - bypassing Congress) to enact a delivery tax as a service charge to be paid anytime a delivery is made.
Legislators in Illinois, and a lot of other states, often debate the merits of a new tax on services. Differences of opinion on the merits of a service tax can be stark, but there is consensus on one thing: the legislature is the body with Constitutional authority to enact, or not enact, new taxes.
That consensus opinion amongst legislators evidently isn’t shared by the Illinois Department of Revenue (IDOR). IDOR is pushing a new service tax on deliveries through a rulemaking now before the Joint Committee on Administrative Rules. The rule would apply sales tax to all separately contracted shipping and transportation.
It’s a tax and clearly beyond the purview of the unelected bureaucracy of the Illinois Revenue Department, but since when do progressives follow the rule of law. Their motto: Never let a good crisis go to waste – in this case – Illinois needs revenue, get it!
Every delivery to a construction site would be taxed for the first time. Consumers would pay not only a delivery charge to the company making the delivery but the delivery tax to the state of Illinois.
This unconstitutional overreach by the Illinois Revenue Department is an effort to find new money for a bankrupt state. This tax will be either directly or indirectly passed on to the consumers. Consumers already pay a sales tax on the item purchased and now a delivery service tax?
If the people of Illinois allow these unelected state bureaucrats to raise our taxes, there will be no limit on their unchecked power and on state taxes in all forms, regardless of who is elected to the General Assembly or who is elected governor!